You are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 8 more years at 6 percent per year. How much will you have in 10 years? Multiple Choice $80,588.15 $75,309.32 $68,137.01 $51,341.32 $71,723.16

Q: You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six…

A: Present value means today's value of the future value of money. It means that the present time…

Q: How much money should I expect to receive in 10 years if I invest $585 every year for 10 years at…

A: Accumulated value of an annuity needs to be determined. This is time value of money (TVM) concept…

Q: You decide to deposit $7000 at a local bank for three years at a 8% rate of interest compounded…

A: The objective of the question is to calculate the future value of an investment of $7000 at a local…

Q: You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy…

A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…

Q: You are offered ​$80,000 today or ​$300,000 in 11 years. Assuming that you can earn 14 percent on…

A: Choosing between $80,000 today and $300,000 in 11 years:Considering the time worth of money and the…

Q: You just inherited some money, and the end of each year for 20 years. You could earn 5% on your…

A: Data given:: PMT(Annuity) = $16800 i= 5% n= 20 years nper= 20   Required:: Amount you should pay…

Q: Current Attempt in Progress Your grandfather is retiring at the end of next year. He would like to…

A: Payment = p = $9600Interest Rate = r = 6.10%

Q: A bank is offering to pay you $1000 at the beginning of each month for the next 10 years. The…

A: Payment per month (PMT) = $1,000Timing = BeginningAnnual interest rate is 6%. So, monthly interest…

Q: Melanie will invest $7,000 per year for the next 32 years. At a rate of 8% per year, how much money…

A: Annual investment = $7,000Interest rate = 8%Number of years = 32 years

Q: Diego plans to invest $500 per month in their tax-free savings account for the next four years.…

A: In the given question, $ 500 is invested at the end of each month for 4 years at 8% per annum.…

Q: You deposit $3,000 at the beginning of every year for 30 years into an investment that earns 8.5%.…

A: Periodic deposit, A = $3,000  Interest rate, r = 8.5%  Period, n = 30 years    The future value of…

Q: Final Question: You want to start saving for your retirement now. You plan on retiring at 60. Solve…

A: The objective of this question is to calculate the amount to be set aside every two weeks to…

Q: An investment will generate $9,000 a year for 20 years. If you can earn 9 percent on your funds and…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: 15. You are offered the right to receive $1000 per year forever, starting in one year. If your…

A: Present value of perpetuity-Annual cash rate flows/discount.

Q: To fund your dream around-the-world vacation, you plan to save $1,275 per year for the next 13 years…

A: Computation of future value:

Q: Todd Spodek will invest $5,000 at the beginning of each year for the next 9 years. The interest rate…

A: A contract between you and another person known as an annuity obligates the other person to pay you…

Q: You want to fund an endowment that will spit off $500,000 next year, and want that to grow at 2% a…

A: Cash Flow = cf = $500,000Growth Rate = g = 2%Rate of Return = r = 7%

Q: Mr. Lucky just won the lottery. He has a choice of $1,000,000 today or a $50,000 semi-annual payment…

A: The concept of time value of money will be used here.Amount today is the present value and…

Q: To fund your dream around-the-world vacation, you plan to save $1,350 per year for the next 10 years…

A: PRESENT VALUE  0 NPER (Years) 10 PMT 1350 INTEREST RATE 5.95%

Q: Gil wants to have $8,750 in 10 years. Use the present value formula to calculate how much he should…

A: Compound = semiannually = 2 Future value = fv = $8750 Time = t = 10 * 2 = 20 Interest rate = r = 4 /…

Q: You have $5000 you want to invest for the next 45 years. You are offered an investment plan that…

A: In this question, we are required to determine the future value after 45 years.

Q: You are considering purchasing an annuity that would pay you $1,000 per year for 10 years. The…

A: Formula to find the present worth of annuity:- P= Amount (P/A,Rate%,time)

Q: An investment plan gives you 4 different options: Plan A: receive $325,000 today: Plan B: receive…

A: Present value of perpetual cash flows is calculated as follows:-Present value of perpetual cash…

Q: Your father paid $10,000 (CF at t = o) for an investment that promises to pay $575 at the end of…

A: Expected Return is that percentage of earnings which is earned by the investor from the project. It…

Q: Suppose you have a choice between receiving $5,000 today or $10,000 in five years. You believe you…

A: > Given data:> Present value (PV) = 5000> Interest rate (r) = 10%> Number of periods ()…

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be…

A: Present value is an estimate of the present value of future cash flows received, discounted at an…

Q: You would like to take a trip in 10 years that is expected to cost $55,000 at that time. If you can…

A: Present value of future amount is computed byfollowing formula-PV =  A ÷ ( 1+r)nWhere,PV = Present…

Q: per year. Another option is to sell the land this year at its current market price of $80,000. The…

A: The cost an organization must pay to use land as a production component for a certain amount of time…

Q: You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that…

A: Amount we will have at the end of 20 years is future value of current investment

Q: Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will receive…

A: Perpetuity means a state of being forever, with no end or for an indefinite period of time. Here,…

Q: You're deciding between two investments. Both earn 8%. Investment A pays you 8% annually on a…

A: First we need to use the compound interest formula below to calculate investment value after 5…

Q: You want to build a house in 12 years. You estimate that the total cost will be $350,000. If you can…

A: The required rate of return is the rate at which the investment should grow to meet the desired…

Q: Assume that Social Security promises you $40,000 per year starting when you retire 45 years from…

A: Social security is the amount which is given by certain employers in addition to salary that gets…